Which federal tax credits are permanently extended versus temporarily expiring after 2025?
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Executive summary
Several high-profile federal tax credits are explicitly temporary and set to end December 31, 2025 — notably energy-efficiency and clean energy home credits created or enhanced by the Inflation Reduction Act and the ACA’s enhanced premium tax credits extended through 2025 (energy credits: up to $3,200 through 12/31/2025) [1] [2] [3]. Other changes to credits and brackets were made permanent or altered by the 2025 One Big Beautiful Bill (OBBB/OBBB Act), which took effect in 2025 and reworked multiple family and individual tax provisions [4] [5].
1. Energy efficiency and residential clean energy credits: temporary, end of 2025
The IRS and ENERGY STAR both state that the expanded energy-efficiency and Residential Clean Energy credits created or extended under the IRA are available only through December 31, 2025. Homeowners can claim an Energy Efficient Home Improvement Credit worth up to $3,200 for qualified property placed in service through 12/31/2025, and the Residential Clean Energy credit likewise ends on that date [1] [2] [3].
2. ACA enhanced premium tax credits: temporary enhancements expiring after 2025
The enhanced premium tax credits that expanded marketplace subsidy eligibility under ARPA and were extended by the IRA are set to expire at the end of 2025. Analysts and policy shops (KFF, Bipartisan Policy Center, Congressional Research Service) report that the enhanced PTCs — which removed the “subsidy cliff” above 400% of the federal poverty level and raised subsidy amounts — run only through 2025 unless Congress acts [6] [7] [8]. Studies cited warn of large premium increases and enrollment declines if the enhancements are not extended [6] [9].
3. One Big Beautiful Bill (OBBB): permanent and new changes effective in 2025
The One Big Beautiful Bill Act, signed July 4, 2025, is described by the IRS and other watchdogs as a major tax-law overhaul taking effect in 2025. The IRS list of provisions shows specific credits altered by the Act and includes provisions that end or modify certain credits (for example, the Residential Clean Energy Credit is noted as “not allowed for any expenditures made after December 31, 2025”), and other family- and bracket-related rules were made permanent or changed [4] [5]. The OBBB therefore both extends some elements and explicitly terminates or alters others; readers should consult the IRS summary for line-by-line changes [4].
4. Which big credits are explicitly permanent in current reporting?
Available sources say the seven federal income tax brackets are now permanent under the 2025 rules and that certain family-credit amounts were changed by the OBBB, but they do not provide a comprehensive list of every credit made permanent. An aggregator (U.S. Bank) reports the seven federal brackets are permanent and notes changes to the child tax credit for 2025–2026, but sources do not enumerate all credits declared permanently extended in statutory text available here [10] [5]. In short: sources identify some permanent bracket changes and OBBB-driven reforms, but do not present a definitive catalogue of permanently extended credits [10] [5].
5. Stakes and competing viewpoints: budget cost versus coverage and climate goals
Analysts warn that making temporary subsidies (like enhanced PTCs) permanent would raise federal deficits — the Congressional Budget Office and JCT have estimated significant budget effects for extensions — while advocates highlight sharp premium increases and coverage losses if subsidies lapse [9] [8]. Energy credits’ temporary status reflects IRA-era political compromise; proponents argue they accelerate home electrification and emissions cuts while opponents and budget analysts emphasize cost and sunset language designed to limit long-term outlays [3] [1].
6. What readers should do next and reporting limitations
If you face decisions tied to these credits (buying solar, claiming marketplace subsidies, making major home upgrades), act with the 12/31/2025 deadlines in mind and consult the IRS pages for each credit and recent OBBB guidance for nuances such as manufacturer QMID rules for 2025 installations [1] [4]. This report is limited to the supplied documents: available sources do not list every single credit made permanent or temporarily extended beyond 2025, nor do they provide the final statutory text for each OBBB change; for definitive, personalized tax advice, consult the IRS or a tax professional [4] [1] [10].